February 4, 2013

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Improve Your Financial Outlook By Changing Your Mindset

by Renee Simpkins

In many cases, the only thing holding people back from financial freedom is their mindset about their financial situation. Whether they are overly optimistic or severely pessimistic about their current finances, it can have a significant effect on the health of their finances. Sometimes, simply changing your mindset about your finances and looking at them objectively is enough for you to be able to make the changes that you need to get your finances under control.

Drop The Defeatist Attitude

Having a defeatist attitude about your financial situation is one of the worst things you can do when you are trying to improve your financial situation. If you are always talking about how you need more money or how expensive things are, you will start to convince yourself that nothing can be done about your financial situation. Instead, remind yourself of the positive things in your life and the good things you are doing to repair your finances or get out of debt. If you feel like you are in control of your financial situation, you are more likely to actually take control and manage your finances effectively.

Train Yourself To Stop Spending

It is much easier to say that you will stop spending than it is to actually stop spending. Unfortunately, reducing your spending as much as possible is the best way to reduce your debt and begin building wealth. Some people find that the best technique is to take it one day at a time. See if you can get through the day without spending any money at all. When that can be accomplished successfully, try to go three days in a row, then bump it up to one week. The goal is to become conscious of your spending at all times and truly evaluating whether the purchase will bring value to your life long term.

Cancel As Many Automatic Fees As Possible

Many companies require the payment of automatic fees so that they can still receive your money even if you are not using their product. Fees for gym memberships and credit monitoring are good examples of these types of fees. There is a variety of automatic fees that may be present in the average person’s life and eliminating the ones for items that are not used frequently can save hundreds of dollars a year. Track all of your purchases for a couple of months to see where your money is going and eliminate those expenses that are not providing you with any benefits.

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Disclaimer

Disclaimer: Fin Engr, James, Renee, the rest of the team and guest posters are not financial professionals. Information provided is for informational and entertainment purposes only and does not constitute financial advice. This website is intended to provide general information and does not attempt to give you advice that relates to your specific situation.
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